Instructions for Form M2 — Fiduciary (2025)

2025 Minnesota Income Tax for Estates and Trusts (Fiduciary)
Form M2 Instructions
Contents
What's New . . . . . . . . . . . .1
Filing Requirements . . . 1-2
General Information . . . 2-3
Filing Reminders . . . . . . . .3
Form M2 Instructions 4-13
Allocation of Adjustments . . . . .13-14
Schedule KF . . . . . . . .14-17
Tax Tables . . . . . . . . .18-21
Questions?
You can find forms and information, including answers to frequently asked questions and options for filing and paying electronically, on our website at: www.revenue.state.mn.us Send us an e-mail at: businessincome .tax@state . mn .us Call us at 651-556-3075 This information is available in alternate formats.
Before You File
Complete a Federal
Return
Before you complete Form
M2, complete federal
Form 1041, U.S. Income
Tax Return for Estates and
Trusts, and supporting schedules . You will need to reference them .
Minnesota Tax ID
Number
Your Minnesota tax
ID is the seven-digit number you're assigned when you register with the department . It's important to include your Minnesota tax ID on your return so that any payments you make are properly credited to your account .
If you don't have a
Minnesota tax ID, you must apply for one . Go to www.revenue.state.mn.us and type Business
Registration in the search box or call 651-282-5225 or 1-800-657-3605 .
Continued

What's New for 2025

For taxpayers affected by federal tax law passed after May 1, 2023
Under current law, definitions used in determining Minnesota taxable income are based on the Internal Revenue Code, as amended through May 1, 2023. Since that date, Congress has enacted the 2025 Federal Tax Budget and Reconciliation Bill (H.R. 1). This act contains changes affecting estates and trusts for tax year 2025. Use Schedules M2NC, M2SBNC, and KFNC to calculate the nonconformity adjustments relating to H.R. 1.
Credit for Increasing Research Activities (R&D Credit)
A portion of the current year R&D credit is now refundable. You must make an election on a timely filed return (including extensions) to claim the refundable portion. See the instructions for lines 22 and 32 for more details.
Short Line Railroad Infrastructure Modernization Tax Credit
Eligible taxpayers must now apply with the Department of Transportation for a credit certificate. This change is effective for taxable years beginning after December 31, 2024. The Department of Revenue will continue to manage credit transfer agreements. See the instructions for line 20 and Schedule RAIL for more details.
Employee Retention Credit Subtraction
Taxpayers may claim a subtraction for wages not deducted from income in the current taxable year and used for the calculation of the federal Employee Retention Credit under CARES Act Sec. 2301; TCDTR20 Sec. 206 and 207; and/or ARPA Sec. 9651. See the instructions for line 69 for more details.

Filing Requirements

An estate or trust, regardless of residency status, must file Minnesota Form M2, Income Tax Return for Estates and Trusts (Fiduciaries) when it has $600 or more of gross income allocable to Minnesota or a nonresident alien as a beneficiary. [M.S. 289A.08.subd. 2] When required, the trustee of a trust or the personal representative of an estate must file Form M2 and pay the tax.
Bankruptcy Estates
If the fiduciary of a bankruptcy estate of a Minnesota resident filed a federal return, a Minnesota return must also be filed. Use Form M1, Individual Income Tax Return, to determine the Minnesota tax and attach it to Form M2. File it in the same way you file federal returns.
Resident Estates
A resident estate is an estate of a deceased person where:
(1) The decedent was domiciled in Minnesota at the date of death, or
(2) The personal representative or fiduciary was appointed by a Minnesota court in a proceeding other than an ancillary proceeding, or
(3) The administration of the estate is carried on in Minnesota in a proceeding other than an ancillary proceeding.
[M.S. 290.01, subd. 7a]
Resident trusts
The definition of a resident trust differs depending on the date—before or after December 31, 1995—the trust becomes irrevocable or is first administered in Minnesota.
For trusts that became irrevocable or were first administered in Minnesota after December 31, 1995, a resident trust means a trust, except a grantor type trust, which meets one of the following criteria:

The trust was created by a will of a decedent who at their death was a Minnesota resident
The trust is irrevocable, and at the time it became irrevocable, the grantor was a Minnesota resident. A trust is considered irrevocable if the grantor is not treated as the owner as defined in sections 671 to 678 of the IRC.

For trusts that became irrevocable or were first administered in Minnesota before January 1, 1996, a resident trust, except a grantor type trust, means any trust administered in Minnesota.
To be considered a resident trust administered in Minnesota, you must meet two of these three criteria:

A majority of the discretionary investment decisions are made in Minnesota
The majority of discretionary distribution decisions are made in Minnesota
The trust's official books and records are kept in Minnesota [M.S. 290.01, subd. 7b]

Relevant Minimum Connection of Resident Trusts. The Minnesota Supreme Court ruled in Fielding v.
Commissioner of Revenue, 916 N.W.2d 323 (Minn. 2018) that a trust may be taxed as a resident if there is "(1) some 'minimum connection' between the state and the entity subject to tax, and (2) a 'rational relationship' between the income the state seeks to tax and the protections and benefits conferred by the state."
The court set out "relevant connections" to be considered, which include Minnesota's connections to:

the trustee
the trust's assets
the administration of the trust
the trust in the tax year at issue Rev . 1/26

The resident trust statute is presumed to be constitutional. Complete and enclose Schedule M2RT with your return if you meet the statutory definition of a resident trust, but believe you may not have sufficient minimum connections to Minnesota to be taxed as a resident trust. Complete Form M2 as a nonresident and use Schedule M2NM to determine your non-Minnesota income (loss) to include on lines 2 and 7 of Form M2.

General Information

Due Date for Filing and Paying
The regular due date for filing Form M2 and paying the tax due is April 15, 2026. If the due date lands on a weekend or legal holiday, returns and payments electronically made or postmarked the next business day are considered timely. If you file your return according to a fiscal year, your return and payment are due the 15th day of the fourth month following the end of the tax year. Short-year returns are due by the 15th day of the fourth month following the month in which the short year ends. Example: If the fiscal year end is May 31, the due date is September 15.
Extension of Time to File
All estates and trusts are granted an automatic six-month extension to file Form M2, if the tax is paid in full by the regular due date. If the tax is not paid by the regular due date, the extension of time to file is invalid.
If the IRS grants an extension to file your federal return, your state filing due date is extended to the federal due date. This is a filing extension only. To avoid penalties, you must make an extension tax payment by the regular due date. See Extension Payment below for details.
Payments
There are four types of fiduciary income tax payments—extension payments, estimated tax payments, tax return payments, and amended return payments. Note: If you are currently paying electronically using the ACH credit method, continue to call your bank as usual. If you want to make payments using the ACH credit method, instructions are available at www.revenue.state.mn.us.
Extension Payment
Your tax is due by the regular due date, even if you're filing under an extension. Any tax not paid by the regular due date is subject to penalties and interest (see lines 36 and 37 instructions on page 9).
If you're filing after the regular due date, you can avoid penalty and interest by making an extension payment for the full amount of the tax owed by the regular due date. For information about payment options see Payment Options on page 3. If you administer 100 or more trusts or are required to make other payments electronically, you are required to pay all fiduciary income taxes electronically. [M.S. 289A.20, subd.
1c]
Estimated Payments
A trust must make quarterly estimated tax payments if it has:

an estimated tax of $500 or more
any nonresident beneficiary' s share of estimated composite income tax of $500 or more

Payments are due by the 15th day of the fourth, sixth, and ninth months of the tax year and the first month following the end of the tax year. Installments for a short tax year are due in equal payments on the 15th day of the fourth, sixth, ninth and final months of the tax year depending on the number of months in the short tax year. No installments are required for a short tax year of fewer than four months.
The required annual payment is the lesser of:

90 percent of your current year's tax liability, or
100 percent of the prior year's tax liability. However, if the trust has more than $150,000 of Minnesota assignable adjusted gross income, you must use 110 percent, rather than 100 percent, of the prior year's tax liability.

The required annual payment must be paid in four equal installments unless certain exceptions apply (see the instructions for Schedule EST, Additional Charge for Underpayment of Estimated Tax).
If estimated tax is required for both the estimated tax and the composite income tax, include both on the same quarterly payment. [M.S.
289A.25]
To make an estimated tax payment, see Payment Options on page 3. If paying by check, send a completed payment voucher with your payment.
Tax Return Payment
If there is an amount due on line 39 of Form M2, you must make a tax return payment. If you're paying by check, send a completed payment voucher with your payment.
Penalties and Interest
Late payment. A late payment penalty is assessed on any tax not paid by the regular due date. The penalty is 6% of the unpaid tax. If you file your return after the regular due date with a balance due, and you do not pay that balance, an additional 5% penalty will be assessed on the unpaid tax.
Late filing. There is also a penalty if you file after the extended due date and owe tax. The late filing penalty is 5% of any tax not paid by the extended due date.
Interest. You must also pay interest on the penalty and tax you are sending in late. The interest rate for 2026 is 7%.
Other penalties. There are also civil and criminal penalties for intentionally failing to file a Minnesota return, evading tax and for filing a false, fraudulent or frivolous return.

Reporting Federal Changes
If the Internal Revenue Service (IRS) changes or audits your federal return and it affects your Minnesota return or distributions to beneficiaries, you must file a Form M2X, Amended Income Tax Return for Estates and Trusts, with the department within 180 days after you were notified by the IRS. Enclose a copy of the IRS report or your amended federal return with your amended Minnesota return.
If the changes do not affect your Minnesota return or Schedules K-1, you have 180 days to send a letter of explanation to the department. Send your letter and a complete copy of your amended federal return or the correction notice to:
Minnesota Fiduciary Income Tax, Mail Station 5140,
600 N. Robert St., St. Paul, MN 55146-5140
If you amended your 2025 federal return solely due to the 2025 Federal Tax Budget and Reconciliation Bill (H.R. 1), your Minnesota NC (nonconformity) adjustment will offset the changes to your federal taxable income. For these amended returns, write "H.R. 1" in red at the top of your amended return (Form M2X) and the amended Schedules KF you issue to beneficiaries. For more details, see the Schedule M2NC instructions.
If you fail to report as required, a 10% penalty will be assessed on any additional tax. [M.S. 289A.60, subd. 24]
Filing Reminders
Composite Income Tax
Minnesota allows estates and trusts to file composite Minnesota income tax on behalf of their beneficiaries who are nonresident individuals and elect to be included. As a result, the electing beneficiary is not required to file Minnesota Form M1, Minnesota Individual Income Tax Return.
The electing individuals must not have any Minnesota source income other than the income from this trust or estate and other entities for which they are electing composite tax or are a part of a PTE tax return.
Beneficiaries receiving distributions from an estate or trust reporting installment sale gains on line 6 of Schedule KF are not eligible for inclusion in a composite return.
If you are paying composite income tax for your electing beneficiaries, check the box for composite income tax on the front of Form M2 and see the line 14 instructions on page 5.
Request for Early Audit
You may request an early audit of a decedent's income tax return, property tax refund claim, the return of an estate, or of a terminating trust by filing Minnesota Form M22, Request for Early Audit of Minnesota Income Tax Return. The request reduces the time the department has to assess additional taxes from 3 1/2 years from the later of the date the return was due, or when it was filed, to 18 months after the request was received.
Use of Information
Your Minnesota tax ID number is public information. All other information on this form is private, and cannot be given to others except as provided by state law. The identity and income information of the beneficiaries are required under state law so the department can determine the beneficiary's correct Minnesota taxable income and verify if the beneficiary has filed a return and paid the tax. The Social Security numbers of the beneficiaries are required under M.S. 289A.12, subd. 13.
When Filing a Paper Return
How to Assemble
Arrange your Minnesota schedules in the order they were completed and place them behind your Form M2. Schedules KF should be grouped together and sorted with the largest share of Minnesota source income first. Then place your federal return and its schedules behind the Minnesota material. Do not staple or tape any enclosures to your return.
Where to Send
Mail your Minnesota and federal forms and schedules, using this mailing label.
Cut on the dotted line and tape to your envelope.
Or mail to: Minnesota Department of Revenue, Fiduciary Income Tax, Mail
Station 1310, 600 N. Robert St., St. Paul, MN 55146-1310
Minnesota Department of Revenue
Fiduciary Income Tax
Mail Station 1310
600 N. Robert St.
St. Paul, Minnesota 55146-1310

FOR ADDITIONAL INFORMATION PLEASE CONTACT THE USPS

REPRESENTATIVE BELOW:
Robert Edwards MCS
Mailing Requirements
United States Postal Service
100 S 1st St Rm 115
Minneapolis MN 55401-9651
PHONE: 612 349 0363
FAX: 612 349 3576
EMAIL: BEDWARD1@EMAIL.USPS.GOV

ALIGN WITH UPPER RIGHT CORNER ALIGN WITH LOWER RIGHT CORNER

CAUTION:
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ABOVE. SEE PUBLICATION 353 FOR PRINTING
REQUIREMENTS.
THIS POSITIVE PREPARED FOR: COURTESY REPLY

MINNESOTA DEPARTMENT OF REVENUE FIDUCIARY INCOME TAX

600 ROBERT ST N
ST PAUL MN 55145-1310
TO BE USED ONLY WITH FIM - A (Courtesy Reply Mail)
AND ZIP CODE:
55145-1310
(c) 1989-95 Envelope Manager for Windows: October 23, 2001 9:33 AM
Payment Options
If you administer 100 or more trusts, you are required to pay all the fiduciary income taxes electronically. We will assess a penalty of 5% of the payment if you fail to do so when required.
Pay with your Bank Account
Go to www.revenue.state.mn.us and click Log in to e-Services
If you're using the system for the first time and need a temporary password, call 651-282-5225 or 1-800-657-3605.
To be timely, you must complete your transaction and receive a confirmation number on or before the due date for that payment.
Pay by Credit or Debit Card
We use a third-party vendor to process credit and debit card payments. A fee is charged for this service.

Go to www.revenue.state.mn.us and click Make a Payment
Click By Credit or Debit Card and follow the prompts to complete the payment

Pay by Check

Go to our website at www.revenue.state.mn.us and click Make a Payment
Click By Check or Money Order to create a payment voucher
Mail with your check to the address on the voucher

Your check authorizes us to make a one-time electronic fund transfer from your account. You may not receive your cancelled check.

Form M2 Instructions
Before you complete Form M2, you must first complete federal Form 1041 and supporting schedules.
If you are a Completed federal Form
Charitable remainder or charitable lead trust (enter zero on Form M2, lines 1 and 9) 1041A or 5227
Designated or qualified settlement fund (under IRC section 468B) 1120-SF
Qualified funeral trust 1041-QFT
Electing small business trust (ESBT) 1041
Tax Year
If you are filing on a fiscal year basis, enter the beginning and ending dates. Without the dates, your filing and payments may not be considered timely.
Minnesota Tax ID Number
Enter your Minnesota tax ID number on Form M2. Without it, processing of the return is delayed, and your estimated tax and extension prepayments cannot be verified and credited properly.
Check Boxes
Place an X in all boxes that apply.
Bankruptcy estate. A separate and distinct taxable entity created when an individual debtor files for bankruptcy under Chapter 7 or 11 of Title 11 of the United States Code. Enter the bankruptcy debtor's SSN in the bankruptcy debtor SSN box and, if filing jointly, enter the second debtor's SSN in the corresponding box.
Composite income tax. If you are paying composite income tax for your electing nonresident beneficiaries. See the line 14 instructions on page 5.
Due Process Nonresident. A trust or estate that meets the definition of a statutory resident (check the statutory resident checkbox), but you believe may not have sufficient minimum connections to Minnesota to be taxed as a resident trust or estate. If you check this box and are a trust, you must also complete and enclose Schedule M2RT with your return. See the instructions on pages 1- 2 and Schedule M2RT for more details.
ESBT (Electing Small Business Trust). An ESBT is a non-grantor trust that has income from one or more S corporations. The portion of an ESBT that consists of stock of one or more S corporations is treated as a separate trust. See Schedule M2SB for more details.
Initial return. If this is the fiduciary's first return filed in Minnesota.
Final return. If this is the fiduciary's final return. For income tax purposes, Minnesota follows federal law on termination of estates and trusts.
All income, deductions and credits are passed through to the beneficiaries.
Form M706 Filed. If the decedent's estate or trust had a M706 estate tax return filed. Enter the gross value of the estate on the line provided.
Grantor Trust. A trust is a grantor trust if the grantor retains certain powers or ownership benefits.
Installment Sale of Pass-through Assets or Interests. If the trust or estate:

executed an installment sale, after December 31, 2016, of S corporation stock or partnership interests being reported on federal Form 6252,
executed an installment sale, after December 31, 2016, of the assets of an S corporation or partnership being reported on federal Form 6252, or
owns an interest in an S corporation, partnership, trust, or estate reporting installment sale gains on line 7 of Schedule KPI or KS, line 6 of Schedule KF, or line 10 of Schedule KPC.

If you are required to check the box and the gain from the sale was distributed, complete line 6 of all applicable Schedules KF to report installment sale information to your beneficiaries. Instructions are provided with Schedule KF. Beneficiaries who are receiving Schedules KF with positive values on line 6 may not be included in a composite return.
Irrevocable Trust. A trust is considered irrevocable if the grantor no longer has control over the trust assets and administration. Enter the date the trust became irrevocable.
Owns or Operates Business. If the estate or trust owns or operates a business through the estate or trust. Provide the Federal Identification Number(FEIN) of the business in the box provided. If the estate or trust owns or operates more than one business, provide a list of all FEINs of the businesses in an attachment.
QSST. If the trust is filing as a Qualified Subchapter S Trust.
Section 645 Election. The IRC section 645 election allows a qualified revocable trust to be treated and taxed as part of the related estate during the election period. If the election is made for federal income tax purposes, it also applies for Minnesota. Enclose a copy of federal Form 8855 or letter making the election.
Statutory Nonresident. A trust or estate that does not meet the definition of a statutory resident under Minnesota Statute section 290.01, subdivisions 7a and 7b and therefore is considered a statutory nonresident. See instructions on pages 1- 2 for more details.
Statutory Resident. A trust or estate that meets the definition of a statutory resident under Minnesota Statute section 290.01, subdivisions 7a and 7b. See instructions on pages 1- 2 for more details.
Tax Position Disclosure. If you filed Form TPD to disclose items or positions that are not otherwise adequately disclosed on your return.
See Form TPD for more details. Continued 4

Line Instructions

Round amounts to whole dollars. Drop amounts less than 50 cents and increase amounts 50 cents or more to the next higher dollar.
Line 2 — Deductions and Losses not Al lowed
Use Schedule M2NM to determine the amount to include on Line 2.
Line 3 — Capital Gain of Lump Sum Distribution
If you received a qualifying lump-sum distribution in 2025 and chose the capital gain election on federal Form 4972, enter the capital gain from line 6 of federal Form 4972. Include a copy of federal Form 4972 when you file Form M2.
Lines 4 and 6 —Additions and Subtractions
Include the amount from line 77, column E of Form M2. See the instructions for Allocation of Adjustments on pages 13 and 14 for more details.
Line 7— Income from Non-Minnesota Sources
Use Schedule M2NM to determine the amount to include on Line 7.
Line 10 — Minnesota Tax
Use the table starting on page 17 to determine the amount to enter on line 10.
Line 11 — Tax from S portion of an Electing Small Business Trust
If you are filing as an Electing Small Business Trust (ESBT), you must file Schedule M2SB to report all items relating to the S portion of the trust. Enter the tax calculated on the M2SB on line 11 of Form M2. Include Schedule M2SB when you file Form M2.
Line 12 — Minnesota Net Investment Income Tax
If you have over $1,000,000 of investment income during the tax year, you must complete Schedule NIIT. Enter the tax calculated on Schedule NIIT on line 12 of Form M2. Include Schedule NIIT when you file Form M2.
Line 13 — Additional Tax
Schedule M1LS—Tax on a Lump-Sum Distribution. If you received a lump-sum distribution from a qualified pension plan, profit sharing plan or stock bonus plan and the 10-year averaging method on federal Form 4972 was used, you must complete Minnesota Schedule M1LS, Tax on Lump-Sum Distribution.
Include the amount from line 11 of Schedule M1LS on line 13 of Form M2. Check the box for Schedule M1LS and include a copy of the schedule when you file your return.
Schedule M2MT—Alternative Minimum Tax. If you had to complete federal Schedule I, Alternative Minimum Tax, you must complete Minnesota Schedule M2MT, Alternative Minimum Tax for Estates and Trusts.
Include the amount from line 18 of Schedule M2MT on line 13 of Form M2. Check the box for Schedule M2MT and include a copy of the schedule with your return.
Line 14 — Composite Income Tax
Add the composite income tax attributed to all electing beneficiaries (the total of line 51 from all Schedules KF), and enter the result on line 14 of Form M2.
Line 16 — Credit for Taxes Paid to Another State
You may claim a nonrefundable credit on line 16 for taxes paid to another state if all of the following are true:

You are filing as a Minnesota resident estate or trust.
You paid 2025 income tax to Minnesota.
You paid 2025 income tax to another state on the same income as Minnesota. For purposes of this credit, a Canadian province or territory and the District of Columbia are considered a state.

The credit cannot exceed the sum of the taxes shown on lines 10 and 11 of Form M2.
Use Schedule M1CR, Credit for Income Tax Paid to Another State, as a worksheet to determine the credit and enter the result on line 16.
You may not carry forward any unused credit.
Line 17 - Film Production Credit
If you received a credit certificate from the Department of Employment and Economic Development (DEED) for eligible production costs, enter the credit amount on line 17 and the certificate number in the space provided.
You may carry any unused credit forward for up to 5 years.
For more details regarding this tax credit, go to the DEED website at mn.gov/deed.
Continued
Form M2 Instructions (continued)

Line 18 - Tax Credit for Owners of Agricultural Assets If you received a credit certificate from the Minnesota Rural Finance Authority for selling or leasing agricultural assets to a beginning farmer, enter the credit amount on line 18 and certificate number in the space provided.
If you have multiple credits, enter the certificate number the estate or trust received directly from the Rural Finance Authority within the certificate number box. If you have multiple credits and received all credits from other pass-through entities, enter the certificate number relating to the largest credit amount within the certificate number box. Include a statement showing the certificate numbers and corresponding credit amounts for all credits you included on line 18. Subtotal all credit amounts on line 18.
You may carry any unused credit forward for up to 15 years.
Line 19 — State Housing Tax Credit
If you received a certificate from Minnesota Housing for qualifying contributions to a state fund, enter the credit amount on line 19 and the certificate number in the space provided.
You may carry any unused credit forward for up to 10 years.
For more details regarding this tax credit, go to Minnesota Housing's website at www.mnhousing.gov.
Line 20 - Short Line Railroad Infrastructure Modernization Credit
If you applied to the Department of Transportation and received a short line railroad infrastructure modernization credit certificate or had a credit transferred to you, you may claim the credit here. Include the amount of the credit and credit certificate on line 20.
Any unused credit amount may be carried forward for up to five years.
You may also transfer the entire amount of the credit before any has been used, or the entire amount of the remaining carryforward to one other taxpayer. To transfer the credit, you may utilize Schedule RAIL.
Line 21 - Credit for Sales of Manufactured Home Parks to Cooperatives
You may be eligible for the nonrefundable Credit for Sales of Manufactured Parks to Cooperatives if the estate or trust sold a manufactured home park to a cooperative.
If you qualify, complete Schedule MHP, Credit for Sales of Manufactured Home Parks to Cooperatives. Enter the credit amount on line 21.
You may carry any unused credit forward for up to 5 years.
Line 22 — Nonrefundable Credit for Increasing Research Activities
Follow the steps below to determine lines 22d, 22e, and 22f.
Worksheet for Lines 22 and 32, Credit for Increasing Research Activities
1 Tentative Current-Year Credit: Include the sum of credits received on Schedules KF line 34 and Schedules KPI and KS lines 26 2 Regular Tax: Include the sum of lines 10 and 11 3 Nonrefundable Credits: Include the sum of lines 16 through 21, 23, and 24. Do not include any portion of line 23 relating to the Alternative Minimum Tax Credit 4 Regular Tax Less Nonrefundable Credits: Subtract step 3 from step 2 5 Prior Year Credit Carryover: Include the portion of line 24 relating to a research credit carryover from prior years .
6 Liability for Tax: Add steps 4 and 5
7 Limitation: Enter the lesser of step 2 and step 6. If the result is zero or less, leave blank 8 Current-Year Credit After Limitation: Enter the lesser of step 1 and step 7. Include the result here and on line 22d 9 Unused Current-Year Nonrefundable Credit: Subtract step 8 from step 1. Include the result here and on line 22e..
If the result is 0, stop here. Your refundable credit amount is $0.
10 Refundable Credit Amount: Multiply step 9 by 19.2% (0.192). Include the result here and on line 32 11 Current-Year Credit Carryover: Subtract step 10 from step 9. Include the result here and on line 22f You may carry any unused credit forward for up to 15 years. You cannot use the carryover amount when determining the refundable portion of the credit.
Line 23 — Other Nonrefundable Credits
If you are claiming a nonrefundable credit other than the credits listed on lines 16 through 22, include the credit on line 23.
Include on line 23 any credits eligible outright by an estate or trust or received on Schedules KPI, KS, or KF as a partner, shareholder, or beneficiary of another entity.
Include on line 23 only the portion of the credit(s) being retained by the estate or trust. Any portion of the credit(s) being distributed to beneficiaries should be reported on the beneficiaries' Schedules KF.
If you are including an amount on line 23, include a statement indicating which credit(s) the estate or trust is claiming. Include with your return filing any required forms, schedules, credit certificates, or documentation.
Continued
Form M2 Instructions (continued)

Employer Transit Pass Credit
You may be eligible for the nonrefundable Employer Transit Pass Credit if the estate or trust operated a business that purchases transit passes to sell or give to employees. The credit is equal to 30 percent of the difference between the price you paid for the pass and the price charged employees.
If you qualify, complete Schedule ETP, Employer Transit Pass Credit. Enter the credit amount on line 23.
You may not carry forward any unused credit.
SEED Capital Investment Credit
You may be eligible for the SEED Capital Investment Credit if:

The estate or trust invested in a qualified business in Breckenridge, Dilworth, East Grand Forks, Moorhead, or Ortonville.
The business has been certified by the Minnesota Department of Employment and Economic Development (DEED) as qualifying for the SEED Capital Investment Program.

Enter the credit amount from the credit certificate you received from the DEED on line 23.
You may carry any unused credit forward for up to four years.
Alternative Minimum Tax Credit
You may be eligible for the Alternative Minimum Tax Credit if the estate or trust paid Minnesota alternative minimum tax in one or more taxable years from 1989 through 2024. If the estate or trust did not pay Minnesota alternative minimum tax, you do not qualify for the credit.
Use the Schedule M1MTC, Alternative Minimum Tax Credit, as a worksheet to determine if you qualify or have a credit carry over from a prior year of any unused portion of your minimum tax credit. Enter the credit calculated from Schedule M1MTC on line 23.
Line 24 - Carryover Credits from Prior Years
Certain credits may be carried over if you were unable to claim the full amount of the credit in a prior year. Use the table below to determine which credits may be claimed on your 2025 return that were carried over from a prior year and what to enter in columns D through F on line 24.
Column D - Name of Credit Column E - Certificate Number Column F - Unused Credit Nonrefundable Credit for Increasing Research Activities* None Include the amount of unused credit from a prior year that you are claiming on your 2025 return. Film Production Credit Enter the certificate number starting with TAXC Owners of Agricultural Assets Credit Enter the certificate number starting with AO State Housing Tax Credit Enter the certificate number starting with SHTC Short Line Railroad Infrastructure Modernization Credit Enter the certificate number starting with MN-SLR Credit for Sales of Manufactured Home Parks to Cooperatives None

You cannot use the carryover amount for the nonrefundable credit for increasing research activities when determining the refundable portion of the credit. See the instructions for lines 22 and 32.

Line 27 — Pass-Through Entity Tax Credit
An estate or trust may receive a tax credit as a qualifying owner of an electing pass-through entity.
Include on line 27 the credit amount you received on the:

2025 Schedule KS, line 33
2025 Schedule KPI, line 33
2025 Schedule KF, line 43

Line 28 — Minnesota Income Tax Withheld
Enter the total of any 2025 Minnesota tax withheld, including:

Minnesota income tax withheld in error (and not repaid) by an employer on wages and salaries of a decedent that was received by the decedent's estate (enclose a copy of federal Form W-2, Wage and Tax Statement), and
The fiduciary's share of any Minnesota income tax withholding from Schedule KS or KPI not passed through to the beneficiaries.

Minnesota requires backup withholding to be made when the payee is subject to federal backup withholding on reportable payments made to a trust for personal services. (IRC section 3406). The Minnesota backup withholding is equal to the payment multiplied by the highest Minnesota tax rate for trusts. The Minnesota backup withholding must be passed through to the trust's beneficiary(s) based upon the income distributed to the beneficiary(s). Report each beneficiary's portion of the backup withholding on line 44 of Schedule KF.
If you are including withholding on line 28, include a copy of the federal Form 1099, Schedule KPI, Schedule KS, or other documentation showing the amount withheld. If the documentation is not included with your Form M2, the department will disallow the amount and assess the tax or reduce your refund. Continued
Form M2 Instructions (continued)

Line 29 — Total Estimated Tax Payments and Any Extension Payments
Enter your total estimated tax and extension payments paid for the tax year, including:

your total 2025 estimated tax payments made in 2025 and 2026, either paid electronically or by check,
the portion of your 2024 refund applied to your 2025 estimated tax, and
any 2025 extension payment, paid electronically or by check, that was made by the due date when filing under an extension.

Line 30 — Credit for Historic Structure Rehabilitation
You may be eligible for the refundable Minnesota Credit for Historic Structure Rehabilitation if all of the following apply:

You made qualified improvements to a certified historic structure in Minnesota.
The improvements qualify for the federal Rehabilitation Credit under IRC, section 47.
You applied for certification to the Minnesota State Historic Preservation Office (SHPO) before starting the project.
SHPO issued a credit certificate upon the project's completion.

For estates and trusts who receive a credit certificate from Minnesota SHPO, enter the National Park Service (NPS) project number from the credit certificate you received in the space provided, and include on line 30:

The credit amount shown on the credit certificate if the initial application for allocation certificate was submitted to SHPO on or before December 31, 2017.
One-fifth of the credit amount shown on the credit certificate if the initial application for allocation certificate was submitted to SHPO after December 31, 2017.

For details about the Minnesota and federal credits, go to the SHPO website at mn.gov/admin/shpo.
Line 31 — Credit for Sustainable Aviation Fuel
If you received a certificate from Department of Agriculture for the refundable Minnesota Credit for Sustainable Aviation Fuel, enter the credit amount on line 31 and the certificate number in the space provided.
For more details regarding this tax credit, go to the Department of Agriculture's website at www.mda.state.mn.us.
Line 32 - Refundable Credit for Increasing Research Activities Use the Worksheet for Lines 22 and 32 on page 6 of these instructions to determine line 32.
Note: You cannot use the carryover amount for the nonrefundable credit for increasing research activities when determining the refundable portion of the credit.
Line 33 — Other Refundable Credits
If you are claiming a refundable credit other than the credits listed on lines 27, 30, 31, and 32, include the credit on line 33.
Include on line 33 any credits eligible outright by an estate or trust or received on Schedules KPI, KS, or KF as a partner, shareholder, or beneficiary of another entity.
Include on line 33 only the portion of the credit(s) being retained by the estate or trust. Any portion of the credit(s) being distributed to beneficiaries should be reported on the beneficiaries' Schedules KF.
If you are including an amount on line 33, include a statement indicating which credit(s) the estate or trust is claiming. Include with your return filing any required forms, schedules, credit certificates, or documentation.
Enterprise Zone Credit
You may be eligible for the refundable Enterprise Zone Credit if the estate or trust operated a business that has been approved by the Minnesota Department of Employment and Economic Development (DEED) as employment property in an enterprise zone.
If you received are approval from DEED for the Enterprise Zone Credit, enter the credit amount on line 33. Attach the certification document received from the DEED.
For more details about the zones, go to the DEED website at mn.gov/deed.
Angel Investment Tax Credit
You may be eligible for the refundable Angel Investment Tax Credit if you made investment in certain Minnesota businesses. The Minnesota Department of Employment and Economic Development (DEED) certifies investors, investment funds, and businesses as being eligible to participate in this credit program.
If you received the Angel Investment Tax Credit Certificate issued by DEED, enter the credit amount on line 33.
For more information about credit eligibility, go to the DEED website at mn.gov/deed.
Continued
Form M2 Instructions (continued)

Line 36 — Penalty
Penalties are collected as part of the tax and are in addition to any charge for underpaying estimated tax. If you are paying your tax after the regular due date, include the appropriate penalties on line 36. Include a statement showing how you arrived at the penalty amount.
Late Payment. If the tax is not paid by the original due date, a penalty is due of 6 percent of the unpaid tax on line 35.
Balance Not Paid. If you file your return after the regular due date with a balance due, an additional 5 percent penalty will be assessed on the unpaid tax.
Late Filing. If you are filing your return after the extended due date, you must pay a late filing penalty. The late filing penalty is 5 percent of the unpaid tax on line 35.
Payment Method. If you are required to pay electronically and do not, an additional 5 percent penalty applies to payments not made electronically, even if your paper check is sent on time.
If, during the 12 months ending June 30 of the tax year, you paid $10,000 or more in estimated tax payments, you are required to make all future estimated tax payments electronically beginning January 1 of the following tax year. Once you meet the electronic payment threshold, you are required to pay electronically for all future periods.
You must also pay electronically if you're required to pay any Minnesota business tax electronically.
Line 37 — Interest
You must pay interest on the unpaid tax and penalty from the regular due date until the total is paid. The interest rate for calendar year 2026 is 7%. To figure how much interest you owe, use the following formula with the appropriate interest rate:
Interest = (tax + penalty) x # of days late x interest rate ÷ 365
Line 38 — Trusts Only - Additional Charge
Skip this line if you are an estate.
Trusts: If you did not pay the correct amount of estimated tax by the due dates, you may have to pay an additional charge for underpaying or not paying estimated tax.
You may also owe an additional charge if the sum of the following is more than $500:

Line 15
Less the sum of any credits on lines 16 through 24.

Complete Schedule EST, Additional Charge for Underpayment of Estimated Tax (for Trusts, Partnerships and S Corporations), to determine the additional charge for underpaying estimated tax, if any, to enter on line 38. Include Schedule EST with your return.
Line 39 — Amount Due
Add lines 35 through 38. This is the total amount you owe.
Check the appropriate box on line 39 to indicate your method of payment. See Payment Options on page 3.
Line 40 — Overpayment
If you have an overpayment, you may choose to have it directly deposited into your bank account, apply all or a portion of your overpayment toward your 2026 estimated tax account, or receive a check.
Line 41 — 2026 Estimated Tax
Skip this line if you owe additional tax or you will be electing to have your entire refund directly deposited (see line 43).
If you are paying 2026 estimated tax, you may apply all or a portion of your refund to your 2026 estimated tax.
Enter the portion of line 40 you want to apply toward your 2026 estimated tax.
Line 42 — Minnesota Income Tax Refund
Subtract line 41 from line 40. The result is the amount of your 2025 Minnesota income tax refund that will be refunded to you.
If you want to request your refund to be direct deposited into your bank account, complete line 43. Your bank statement will indicate when your refund was deposited to your account. Otherwise, skip line 43 and your refund will be sent to you in the mail.
Line 43 — To Request Direct Deposit of Refund
If you want your refund to be directly deposited into your checking or savings account, enter the routing and account numbers.
The routing number must have nine digits. The account number may contain up to 17 digits (both numbers and letters). Enter the number and leave out any hyphens, spaces and symbols.
If the routing or account number is incorrect or is not accepted by your financial institution, your refund will be sent to you in the form of a paper check.
By completing line 43, you are authorizing the department and your financial institution to initiate electronic credit entries, and if necessary, debit entries and adjustments for any credits made in error.
Continued
Form M2 Instructions (continued)
You can find your bank's routing number and account number on the bottom of your check.

Line 44 — State and Municipal Bond In terest
Enter the amount of interest or dividends received from bonds or a bond mutual fund which invests in non-Minnesota state or municipal securities.
For dividends received from a bond mutual fund, determine the amount to include using the following instructions:

If 95 percent or more of the federally tax-exempt dividends from a mutual fund came from bonds issued by Minnesota, only the portion of the dividend generated by non-Minnesota bonds must be included.
If less than 95 percent of all federally tax-exempt interest dividends from a mutual fund came from bonds issued by Minnesota, all of the federally tax-exempt interest dividend from that fund must be included.

Nonresident estates and trusts: Non-Minnesota interest or dividends received from bonds or a bond mutual fund do not have to be added back to Minnesota income. [M.S. 290.0131, subd. 2]
Line 45 — State Taxes Deducted in Arriving at Net Income
Enter the amount of state income tax, sales and use tax, motor vehicle sales tax, excise tax, or tax based on net income paid or accrued within the taxable year and deducted on the federal return. Include state tax deductions reported to you on Minnesota Schedules KF, KS, and KPI. For the purposes of this addition, "state" means any state or any province or territory of Canada to the extent the tax is deducted under IRC section 63(d). [M.S. 290.0131, subd. 3] State income tax deductions are not allowed on the Minnesota return.
Line 46 — Expenses Related to Income Not Taxed by Minnesota, Other Than From U.S. Bond Obligations
Enter the amount of expenses deducted on your federal return that relate to income not taxed by Minnesota. [M.S. 290.0131, subd. 6]. If you had expenses attributable to interest or mutual fund dividends from U.S. bonds, see the instructions for line 59 on page 11.
Line 47 — Suspended Loss of Bonus Depreciation
If you're claiming a suspended loss from 2001-2005 or 2008-2024 on your federal return that was generated by bonus depreciation, and you did not add back 80 percent of the bonus depreciation in those years, complete the following steps:
Line 48 — Bonus Depreciation Addition
If you claimed federal bonus depreciation, you must add back 80 percent of the bonus depreciation to Minnesota. Follow the steps on the next page to determine line 48.
Form M2 Instructions (continued)
Continued
1 Bonus depreciation from 2001-2005 or 2008-2024 not added back on Form M2 2 Total suspended loss from activity remaining after 2025 3 Subtract step 2 from step 1 (if a negative amount, enter zero) 4 Multiply step 3 by 80 percent (.80) 5 Total of the 80 percent bonus depreciation addition passed through to you as a beneficiary of another estate or trust (from line 4 of Schedule KF) 6 Add steps 4 and 5. Enter here and on line 47
Signature
The return must be signed by the fiduciary or authorized officer of the organization receiving, controlling or managing the income of the estate or trust. The person must also include his or her ID number.
If someone other than the fiduciary prepared the return, the preparer must also sign and provide their Preparer Tax Identification Number
(PTIN) and phone number.
Check the box to authorize the department to discuss this return with the preparer. This authority allows us to discuss with your preparer these items from this return: line item details; tax due on original and adjustments made during processing; penalty or interest due; documents received or sent like a tax order or bill; and dates and amounts of payments, credits, or refunds. The authority also allows your preparer to cancel direct deposit or debit payments and submit an abatement request.
The authority granted by a marked return checkbox is valid for one year after the due date for current original returns, or one year from the date the form was submitted for amended and noncurrent original returns.
Checking the box does not give your preparer the authority to sign any tax documents on your behalf, represent you at any audit or appeals conference, or discuss abatement progress. For these types of authorities, you must file Form REV184b, Business Power of Attorney, with the department.
E-mail Address
If the department has questions regarding your return and you want to receive correspondence electronically, indicate the e-mail address below your signature. Check a box to indicate if the e-mail address belongs to the fiduciary or paid preparer.
By providing an e-mail address, you are authorizing the department to correspond with you or the designated person via email and you understand that the entity's nonpublic tax data may be transmitted over the Internet.
You also accept the risk that the data may be accessed by someone other than the intended recipient. The department is not liable for any damages that the fiduciary may incur as a result of an interception.

Line 49 — Section 199A Qualified Business Income (QBI)
Enter the amount of QBI you deducted from net income under IRC section 199A for the taxable year. Include on line 49 only the portion of the QBI deduction being retained by the estate or trust. Allocate 100% of line 49 to the fiduciary on line 77 of Form M2. [M.S. 290.0131, subd. 16]
Line 50 — Addition Due to Federal Changes Not Adopted by Minnesota
Enter the amount from Schedule M2NC, line 31. If the amount is negative, leave line 50 blank and enter it as a positive number on line 62.
Line 51 — Net Operating Loss (NOL) Carryover Adjustment
If you claimed a federal net operating loss deduction on line 15b of federal Form 1041 in this tax year, add that amount to line 51 as a positive number.
Line 52 — Foreign-Derived Intangible Income (FDII) Deduction
Enter the amount of foreign-derived intangible income (FDII) you deducted from net income under IRC section 250 for the taxable year.
[M.S. 290.0131, subd. 17]
Line 53 — Other Additions
Include an amount on line 53 if the estate or trust is required to make any of the following Minnesota additions:

First-time home buyer savings account addition [M.S. 290.0131, subd. 14]
529 plan addition [M.S. 290.0131, subd. 15]

Lines 54 through 57
These lines are intentionally left blank.
Line 59 — Net Interest from U.S. Bonds
Interest earned on certain direct federal obligations is taxable on the federal return, but is not taxable on the state return. You may reduce your taxable income if you reported interest on your federal return that is exempt from state income tax.
Include the interest you received from certain U.S. bonds, bills, notes and other debt instruments, reduced by any related investment interest and other expenses you deducted on your federal return that relate to this income.
You may also include the portion of dividends from mutual funds that are attributable to such bonds, bill or notes, reduced by any related expenses you deducted on your federal return.
Enclose a statement from the fund indicating the proportionate interest earned on the above securities. [M.S. 290.0132, subd. 2]
Line 60 — State Income Tax Refunds
Income tax refunded by Minnesota or any other taxing jurisdiction that was included as income on the federal return is not taxed by Minnesota. [M.S. 290.0132, subd. 3]
Line 61 — Federal Bonus Depreciation Subtraction
You may be able to reduce your taxable income if you:

deducted bonus depreciation on your 2020 through 2024 federal return, and
reported 80 percent of the federal bonus depreciation as an addition to income on your 2020 through 2024 Form M2, or
received a federal bonus depreciation subtraction in 2025 from another flow-through entity.

If an individual has unused bonus depreciation subtractions when they die, the subtractions are not allowed to be carried to the fiduciary income tax return of the individual's estate or trust.
To determine the amount, see Worksheet for Line 61.
Form M2 Instructions (continued)
1 Add line 14 and line 25 of your federal Form 4562* 2 Include the amount from line 2a of Schedule M2NC 3 Include the amount from line 7a of Schedule M2NC 4 Include the amount from line 15a of Schedule M2NC 5 Add steps 2, 3, and 4 6 Subtract step 5 from step 1 7 Total bonus depreciation passed through to you as a shareholder of an S corporation (from line 4 of Schedule KS), or as a partner of a partnership (from line 4 of Schedule KPI) 8 Include the total amount from line 2a of all Schedules KPINC, KSNC, and KFNC you received 9 Include the total amount from line 7a of all Schedules KPINC, KSNC, and KFNC you received 10 Include the total amount from line 15a of all Schedules KPINC, KSNC, and KFNC you received 11 Include the amount from line 20 of Schedule M2NC as a positive number 12 Add steps 6 through 11 13 Multiply step 12 by 80% (.80) 14 Total of any 80% federal bonus depreciation addition you received as a beneficiary of another estate or trust (from line 5 of Schedule KF) 15 Add steps 13 and 14. Enter here and on line 48

If bonus depreciation included in step 1 or 2 generated a loss in an activity that cannot be deducted in 2025 (e.g., a passive activity loss, a loss in excess of basis, or an excess business loss), you may reduce step 1 or 2 by the amount of loss not allowed from the activity for 2025, up to the bonus depreciation claimed by the activity.

Line 62 — Subtraction Due to Federal Changes Not Adopted by Minnesota
Enter the amount from Schedule M2NC, line 31. If the amount is a positive, leave line 62 blank and enter it as a positive number on line 50.
Line 63 — Subtraction for Railroad Maintenance Expenses
Enter the amount of any qualified railroad track maintenance expenditures that are not allowed to be deducted on your federal return due to claiming the federal credit under IRC section 45G(a). This includes the amount of depreciation expenses you were not allowed for federal income tax purposes due to making a basis adjustment as a result of claiming the federal credit. The Minnesota subtraction is allowed regardless of when the railroad purchased the asset to support the federal Railroad Track Maintenance Credit. [M.S. 290.0132, subd. 22]
Line 64 — Net Operating Loss (NOL) Carryover Adjustment Enter the amount of your Minnesota net operating loss allowed in this year. [M.S. 290.095, subd. 11]
Line 65 — Deferred Foreign Income (IRC Section 965)
Enter the amount of deferred foreign income included in net income under IRC section 965 for the taxable year. [M.S. 290.0132, subd. 27]
Line 66 — Disallowed IRC Section 280E Expenses of a Licensed Cannabis or Hemp Business
If you are a licensed cannabis or hemp business with the Office of Cannabis Management, you may subtract expenses that were not allowed for federal tax purposes under IRC section 280E. Enter the disallowed IRC section 280E expenses on line 66. [M.S. 290.0132, subd. 29]
Lines 67 — Delayed Business Interest
You may be able to reduce your taxable income if you:

Reported a nonconformity adjustment in tax years 2019 through 2022 for business interest expense deducted under the special rule (CARES Act Section 2306) in IRC section 163(j)(10)(A) and (B).
Have an unused Minnesota-only excess business interest expense carried forward from your 2019 through 2022 Minnesota returns.

If you filed a 2023 return, enter the same amount of the subtraction you claimed on your 2023 return.
If you did not file a 2023 return, determine the amount of your subtraction by summing the amounts reported on the following nonconformity adjustment lines:

2019 Form M2, line 36, or 2019 Form M2SB, line 23
2020 Schedule M2NC, line 6, or 2020 Schedule M2SBNC, line 6
2021 Schedule M2NC, line 5, or 2021 Schedule M2SBNC, line 5
2022 Schedule M2NC, line 5, or 2022 Schedule M2SBNC, line 5 Multiply the total of the above lines by 20 percent. This is the amount of your subtraction in tax year 2025. The remaining 2/5th of the total can be taken as a 20 percent subtraction in each of the tax years 2026 and 2027.

Worksheet for Line 61
If you claimed bonus depreciation as an addition on your 2020 Form M2:
1 Portion of lines 38 and 39 of your 2020 Form M2 allocated to fiduciary 1 2 Net operating loss generated for tax year 2020 (line 24, Schedule A of 2020 federal Form 1045). Enter as a positive number .. 2 3 Subtract step 2 from step 1 3 4 Multiply step 3 by 20% (.20) 4
If you claimed bonus depreciation as an addition on your 2021 Form M2:
5 Portion of lines 41 and 42 of your 2021 Form M2 allocated to fiduciary 5 6 Net operating loss generated for tax year 2021 (line 24, Schedule A of 2020 federal Form 1045). Enter as a positive number . . 6 7 Subtract step 6 from step 5 7 8 Multiply step 7 by 20% (.20) 8
If you claimed bonus depreciation as an addition on your 2022 Form M2:
9 Portion of lines 41 and 42 of your 2022 Form M2 allocated to fiduciary 9 10 Net operating loss generated for tax year 2022 (line 24, Schedule A of 2022 federal Form 1045). Enter as a positive number 10 11 Subtract step 10 from step 9 11 12 Multiply step 11 by 20% (.20) 12
If you claimed bonus depreciation as an addition on your 2023 Form M2:
13 Portion of lines 44 and 45 of your 2023 Form M2 allocated to fiduciary 13 14 Net operating loss generated for tax year 2023 (line 24, Schedule A of 2023 federal Form 1045). Enter as a positive number 14 15 Subtract step 14 from step 13 (if zero or less, enter 0) 15 16 Multiply step 15 by 20% (.20) 16
If you claimed bonus depreciation as an addition on your 2024 Form M2:
17 Portion of lines 46 and 47 of your 2024 Form M2 allocated to fiduciary 17 18 Net operating loss generated for tax year 2024 (line 24, Schedule A of 2024 federal Form 1045). Enter as a positive number 18 19 Subtract step 18 from step 17 (if zero or less, enter 0) 19 20 Multiply step 19 by 20% (.20) 20
If you received a subtraction in 2025 from an estate or trust:
21 Total of any bonus depreciation subtraction amounts you received as a beneficiary of an estate or trust (from line 18 of Schedule KF) 21
Total subtraction
22 Add steps 4, 8, 12, 16, 20, and 21. Enter here and on line 61 of Form M2 22

Lines 68 — Delayed Net Operating Loss Deduction
You may be able to reduce your taxable income if you:

Reported a nonconformity adjustment in tax years 2017 through 2022 for net operating loss deducted as a result of the CARES Act Section 2303.
Have an unused Minnesota-only net operating loss deduction carried forward from your 2017 through 2022 Minnesota returns.

To determine the amount of your subtraction, sum the amounts reported on the following nonconformity adjustment lines:

2017 Form M2, line 31b with Code 19, or 2017 Form M2SB, line 18b with Code 19
2018 Schedule M2NC, line 26, or 2018 Schedule M2SBNC, line 27
2019 Form M2, line 35, or 2019 Form M2SB, line 22
2020 Schedule M2NC, line 4, or 2020 Schedule M2SBNC, line 4
2021 Schedule M2NC, line 3, or 2021 Schedule M2SBNC, line 3
2022 Schedule M2NC, line 3, or 2022 Schedule M2SBNC, line 3 Use the worksheet below to determine your Minnesota subtraction.

Worksheet for Line 68
1 Enter the amount from your prior year nonconformity adjustments totaled above 2 Enter the amount of federal taxable income from line 23 of federal Form 1041. If less than zero, enter 0.
3 Multiply step 2 by 80% (.80)
4 Enter the lesser of step 1 or step 3. Include this amount on line 68 5 Subtract step 4 from step 1. This is your Minnesota NOL carried into 2026. Retain this amount for your records
Line 69 — Employee Retention Credit Subtraction
Enter the amount of wages not deducted from income in the current taxable year and used for the calculation of the federal Employee Retention Credit under CARES Act Sec. 2301; TCDTR20 Sec. 206 and 207; and/or ARPA Sec. 9651.
Line 70 — Other Subtractions
Include an amount on line 70 if the estate or trust is required to make any of the following Minnesota subtractions:

Gain on forced sale of farm property subtraction [M.S. 290.0132, subd. 6]
National Guard and reserve compensation subtraction [M.S. 290.0132, subd. 11]
Armed forces active-duty compensation paid to Minnesota residents subtraction [M.S. 290.0132, subd. 12]
Nonresident military service compensation subtraction [M.S. 290.0132, subd. 15]
National service educational awards subtraction [M.S. 290.0132, subd. 16]
Military service pension and retirement pay subtraction [M.S. 290.0132, subd. 21]
Contributions to section 529 plan subtraction [M.S. 290.0132, subd. 23]
First-time home buyer savings account subtraction [M.S. 290.0132, subd. 25]
Social Security benefits subtraction [M.S. 290.0132, subd. 26]
V olunteer driver reimbursement subtraction [M.S. 290.0132, subd. 30]
Qualified public pension subtraction [M.S. 290.0132, subd. 34]
Damages for sexual harassment or abuse subtraction [M.S. 290.0132, subd. 35]
Coerced debt subtraction [M.S. 290.0132, subd. 36]
Consumer enforcement public compensation subtraction [M.S. 290.0132, subd. 37]
Foreign service retirement subtraction [M.S. 290.0132, subd. 39]

Lines 71 through 74
These lines are intentionally left blank.
Allocation of Adjustments (Lines 76 through 78)
The beneficiary(s) of a trust or an estate must file an individual or fiduciary income tax return to report their portion of the income distributed.
A resident individual beneficiary must report all income from the trust or estate. A nonresident individual beneficiary who receives $14,950 or more of Minnesota gross income must report income assignable to Minnesota.
The purpose of this section is to allocate any adjustments noted on lines 44 through 57 and 59 through 74 between the beneficiary(s) and fiduciary. If all the income is retained by the trust or estate, then any adjustment is allocated entirely to the fiduciary. If all of the income is distributed, then any adjustment is passed through to the beneficiary(s) in proportion to their share of distributable net income. If part of the income is retained and part distributed, then part of the adjustment is allocated to the fiduciary and part to the beneficiary(s).

The share of adjustments in column E is the same percentage share as the fiduciary's and each beneficiary' s share of federal distributable net income to the total distributable net income (the amount on Form 1041, Schedule B, line 7). Divide each share by the total distributable net income to determine the percentage.
Certain adjustments must be assigned entirely to the fiduciary or the beneficiary. See the instructions for line 28 on page 7 for the allocation instructions for Minnesota backup withholding. See the instructions for line 49 on page 11 for the allocation instructions for the Section 199A QBI addition.
Where the adjustment is an addition, that portion of the adjustment allo cated to each beneficiary and to the fiduciary must be shown as an addi - tion.
Where the adjustment is a subtraction, that part of the adjustment allocated to each beneficiary and to the fiduciary must be shown as a subtraction.
Column C
Enter the federal distributable net income assigned to each beneficiary and the fiduciary as deter mined for federal purposes. Add the amounts and enter the total on line 78, column C.
Column D
To obtain the proper percentage, divide each figure from column C on lines 76 and 77 by the total of column C on line 78. Enter this percentage in column D to correspond with each beneficiary and the fiduciary. The total of column D must equal 100%.
Column E
To obtain the proper share for each beneficiary and the fiduciary, multiply the adjustment on line 78, column E, under additions and subtractions by the percentage in column D. Enter the result for each beneficiary and the fiduciary in column E, under additions or subtractions.
Complete a Schedule KF for each beneficiary who is assigned adjustments. Complete and provide Schedule KF to each nonresident beneficiary with Minnesota source income and any Minnesota beneficiary who has adjustments to income.
Completing Schedule KF
Complete and provide Schedule KF to each nonresident beneficiary and any Minnesota resident beneficiary who has adjustments to income.
Enter the information associated with this estate or trust and beneficiary.
Purpose
An estate or trust must provide each nonresident beneficiary, and any Minnesota beneficiary with adjustments to income, with enough information for them to complete a Minnesota income tax return and determine their correct Minnesota tax.
Schedule KF provides beneficiaries the information they need to file a Minnesota income tax return. The schedule shows each beneficiary their specific share of the fiduciary's income, credits and modifications. Provide the beneficiary a copy of both the front and back of the completed Schedule KF and instructions.
If there are no modifications or credits and the beneficiary is a full-year Minnesota resident, you do not have to provide Schedule KF.
You must enclose with your Form M2 copies of the Schedules KF and attachments issued to your beneficiaries and copies of your federal Schedules K-1.

Line Instructions

Enter the name, address and social security number of the beneficiary.
Calculate lines 1 through 44 the same for all resident and nonresident beneficiaries. Calculate lines 45 through 49 for estate, trust, and nonresident individual beneficiaries only. Calculate lines 50 and 51 for nonresident beneficiaries only. Round amounts to the nearest whole dollar.
All Beneficiaries, Lines 1 through 44
KF, lines 1-5 and 7-32
If all or part of the fiduciary's income is distributed, then any adjustment shown on lines 44 through 57 and 59 through 74 of Form M2 is passed through to the beneficiary(s) in proportion to their share of distributable net income. Certain adjustments must be assigned entirely to the fiduciary or the beneficiary. See the Allocation of Adjustments instructions on page 13 for more details. From line 76 of Form M2, enter the adjustments to income allocated to each beneficiary.
KF, line 6
If you checked the box for Installment Sale of Pass-through Assets or Interests and the gain from the sale was distributed, then complete line 6 for all applicable Schedules KF to report installment sale information to your beneficiaries.
Line 6a. Enter each beneficiary's share of the gross profit from any installment sale of S corporation stock or assets, or partnership interests or assets executed after December 31, 2016.

Completing Schedule KF (continued)
If the sale was completed by the fiduciary, then the total gross profit is found on federal Form 6252, line 16. If the sale was executed by an entity owned by the fiduciary, or another entity in a multi-tiered structure, then this information is reported on:

Schedules KS and KPI, line 7a
Schedule KPC, line 10a
Schedule KF, line 6a

This amount is allocable amongst the beneficiaries in proportion to their share of distributable net income.
If installment sale information is reported to the fiduciary on informational schedules from other entities, then the amount reported to the beneficiaries should equal the total amount reported on all Schedules KF, KPI, KS, and KPC.
If the fiduciary receives installment payments from multiple sales executed after December 31, 2016, attach a schedule to Form M2 detailing the different sales and distributive allocations.
Line 6b. Enter each beneficiary's share of installment sale income from the sale of S corporation stock, or partnership interests, and any installment sale income from the sale of the assets of any S corporation or partnership. If the sale was completed by the fiduciary completing this schedule, then the total installment sale income is found on Form 6252, line 24. If the sale was executed by an entity owned by the fiduciary, or another entity in a multi-tiered structure, then this information is reported on:

Schedules KS and KPI, line 7b
Schedule KPC, line 10a
Schedule KF, line 6b

Schedule KS, line 50, for shareholders of a S corporation
Schedule KPI, line 52, for partners of a partnership
Schedule KF, line 6c, for beneficiaries of a trust or estate. Enter the amount as a positive number carried to five decimal places.

Note: If you are reporting a gain from an entity in a multi-tiered pass-through structure, you may need to gather information from the tax preparer of the company that executed the sale.
KF, line 7
If the amount reported on the beneficiary's line 31 of Schedule KFNC is a positive number, include the amount from line 31 of Schedule KFNC on the beneficiaries Schedule KF, line 7.
KF, line 8
For individual beneficiaries, include only the portion of the NOL adjustment relating to the WHBA of 2009. [M.S. 290.095, subd. 11(c)]
KF, lines 11 through 15
These lines are intentionally left blank.
KF, line 20
If the amount reported on the beneficiary's line 31 of Schedule KFNC is a negative number, include the amount from line 31 of Schedule KFNC as a positive number on the beneficiary's Schedule KF, line 20.
KF, line 21
For individual beneficiaries, include only the portion of the NOL adjustment relating to the WHBA of 2009. [M.S. 290.095, subd. 11(c)]
KF, lines 27 through 30
These lines are intentionally left blank.
KF, line 31
Enter the beneficiary's share of a net gain relating to dispositions of Class 2a property. The gain must meet the definition of net investment income under IRC section 1411.
KF, line 32
Enter the beneficiary's share of deductions and modifications relating to dispositions of Class 2a property on Schedule KF, line 32.
KF, line 33
If you received a Minnesota income tax withholding credit, enter the beneficiary's distributive share of any credit that is passed through to the beneficiary. Do not include amounts reported on line 28 of Form M2.

Completing Schedule KF (continued)
KF, line 34
If you are a partner of a partnership or a shareholder of an S corporation that conducted qualified research and development in Minnesota, enter the beneficiary's distributive share of the nonrefundable credit from line 26 of Schedules KPI and KS. Attach the appropriate schedule when you file your return.
KF, line 35
If you received a credit certificate from DEED, enter the beneficiary's distributive share of the credit on line 35.
KF, line 36
If you received a credit certificate from the Minnesota Rural Finance Authority for selling or leasing agricultural assets to a beginning farmer, enter the certificate number in the space provided and the beneficiary's distributive share of the credit on line 36.
If you have multiple credits, enter the certificate number your fiduciary received directly from the Rural Finance Authority within the certificate number box. If you have multiple credits and received all credits from other pass-through entities, enter the certificate number relating to the largest credit amount within the certificate number box. Subtotal all credit amounts on line 36.
KF, line 37
If you received a credit certificate from Minnesota Housing, enter the beneficiary's distributive share of the credit on line 37.
KF, line 38
If you are eligible for the nonrefundable Short Line Railroad Infrastructure Modernization Credit, enter the beneficiary's distributive share of the credit on line 38.
KF, line 39
If you are eligible for the nonrefundable Credit for Sales of Manufactured Home Parks to Cooperatives, enter the beneficiary's distributive share of the credit on line 39.
KF, line 40
The estate or trust must distribute unused credits from a prior year to beneficiaries based upon the percentage of income distributed to the beneficiary. Use the table below to determine the information you must distribute to beneficiaries in columns D through G on line 40.
Column D - Name of Credit Column E - Certificate Number Column F - Unused Credit Column G - Remaining Years Nonrefundable Credit for Increasing Research Activities* None Include the amount of unused credit from a prior year that you are distributing to a beneficiary in tax year 2025 .
Include the remaining carryover years of the unused credit . The carryover years include the current tax year and must be a number between 1 and 15 .
For example, the estate or trust received the credit in tax year 2024 and retained all income . Then the estate or trust is distributing some or all income in tax year 2025 . The estate or trust should include the number "15" on the Remaining Carryover Years line on the 2024 Schedule KF .
Film Production Credit Enter the certificate number starting with TAXC
Owners of Agricultural Assets
Credit
Enter the certificate number starting with AO
State Housing Tax Credit Enter the certificate number starting with SHTC
Short Line Railroad Infrastructure
Modernization Credit
Enter the certificate number starting with MN-SLR
Credit for Sales of Manufactured
Home Parks to Cooperatives
None

You cannot use the carryover amount for the nonrefundable credit for increasing research activities when determining the refundable portion of the credit. See the instructions for lines 22 and 32 of Form M2.

KF, Line 41
If you are eligible for or received the Credit for Sustainable Aviation Fuel as an owner of a partnership or S corporation, enter the beneficiary's distributive share of the credit on line 41. Attach the appropriate certificate when you file your return and enter the certificate number in the space provided.
KF, line 42
If you are eligible for or received the Credit for Historic Structure Rehabilitation as an owner of a partnership or S corporation, enter the beneficiary's distributive share of the credit on line 42. Attach the appropriate certificate when you file your return and enter the NPS project number in the space provided.
KF, line 43
If you are a qualifying owner of an electing pass-through entity, enter the beneficiary's distributive share of the credit that is passed through to the beneficiary. Do not include amounts reported on line 27 of Form M2.

Completing Schedule KF (continued)
KF, line 44
If you remitted Minnesota backup withholding on a reportable payment made for personal services, include the beneficiary(s) portion of the backup withholding on line 44. The Minnesota backup withholding must be passed through to the trust's beneficiary(s) based upon the income distributed to the beneficiary(s). See the instructions for line 28 of Form M2 for more details.
Estate, Trust, and Nonresident Individual Beneficiaries, Lines 45 through 49
Lines 45 through 49 apply to estate, trust, and nonresident individual beneficiaries. This beneficiary will be taxed on the income that is allocable to Minnesota.
KF, lines 45 through 48
From the beneficiary's federal Schedule K-1 (1041), enter the Minnesota portion of amounts on lines 45 through 48.
Interest or dividend income derived from a trade or business (S corporations and partnerships) that is apportioned to Minnesota should be included on line 47.
Include only other income allocable to Minnesota on line 48. For example, include other income from services performed in Minnesota, but do not include interest, dividends or distribution from a pension plan or an annuity.
KF, line 49
Minnesota source gross income is used to determine if a nonresident individual is required to file a Minnesota individual income tax return (Form M1). Gross income is income before business or rental deductions and does not include losses.
Enter the beneficiary's distributive share of the fiduciary's Minnesota source gross income.
Nonresident Beneficiaries, Lines 50 and 51 — Composite Income Tax
KF, line 50
Use the Worksheet for Line 50 to determine line 50.
KF, line 51
Nonresident beneficiaries must pay tax if their Minnesota gross income is more than the minimum filing requirement for the year ($14,950 for 2025). Skip this line if the nonresident beneficiary did not elect the fiduciary to pay composite income tax on his or her behalf.
To determine the amount of composite income tax to pay on behalf of each electing beneficiary, follow the steps on the Worksheet for Line 51.
Check the box next to line 51 indicating the beneficiary's election for composite income tax filing.
If the beneficiary elects to be included in composite income tax but has zero tax due, enter zero on line 51 and still check the box to indicate the election.
Once you have completed all Schedules KF for your electing nonresident beneficiaries, add the amounts on line 51 of all schedules and enter the total on line 14 of Form M2. This is the amount of composite income tax you are required to pay on behalf of your electing beneficiaries.
Worksheet for Line 50
1 Sum of: 80 percent of bonus depreciation from line 5 of the beneficiary's Schedule KF and 80 percent of Minnesota-only bonus depreciation from line 20 of the beneficiary's Schedule KFNC as a positive number 2 Combine lines 7 and 9 of the beneficiary's Schedule KF 3 Combine lines 45 through 48 of the beneficiary's Schedule KF 4 Add steps 1, 2 and 3 5 To the extent allowed by law, enter one-fifth of the beneficiary's share of the federal bonus depreciation that was added back in a year the beneficiary elected to be included in composite income tax 6 Combine lines 20, 22, 24, and 25 of the beneficiary's Schedule KF 7 Add steps 5 and 6 8 Subtract step 7 from step 4 Enter the result from step 8 on line 50 of the beneficiary's Schedule KF. The result in step 8 is the beneficiary's adjusted Minnesota source distributive income from this fiduciary.
Worksheet for Line 51
1 Multiply line 50 of Schedule KF by 9.85% (.0985)
2 Add the credits and backup withholding from lines 33, 35 through 42, and 44 of Schedule KF
3 Subtract step 2 from step 1. If the result is less than zero, enter zero
The result in step 3 is the amount you are required to pay on behalf of the electing beneficiary.
Enter this amount on line 51 of the beneficiary's Schedule KF and check the box to indicate the beneficiary's election to be included.

2025 Tax Table
Continued
If line 9 of Form M2 is: at least but less than your tax is
0 20 0
20 100 3
100 200 8
200 300 13
300 400 19
400 500 24
500 600 29
600 700 35
700 800 40
800 900 45
900 1,000 51
1,000 1,100 56
1,100 1,200 62
1,200 1,300 67
1,300 1,400 72
1,400 1,500 78
1,500 1,600 83
1,600 1,700 88
1,700 1,800 94
1,800 1,900 99
1,900 2,000 104
2,000 2,100 110
2,100 2,200 115
2,200 2,300 120
2,300 2,400 126
2,400 2,500 131
2,500 2,600 136
2,600 2,700 142
2,700 2,800 147
2,800 2,900 152
2,900 3,000 158
3,000 3,100 163
3,100 3,200 169
3,200 3,300 174
3,300 3,400 179
3,400 3,500 185
3,500 3,600 190
3,600 3,700 195
3,700 3,800 201
3,800 3,900 206
3,900 4,000 211
4,000 4,100 217
4,100 4,200 222
4,200 4,300 227
4,300 4,400 233
4,400 4,500 238
4,500 4,600 243
4,600 4,700 249
4,700 4,800 254
4,800 4,900 259
4,900 5,000 265
5,000 5,100 270
5,100 5,200 276
5,200 5,300 281
5,300 5,400 286
5,400 5,500 292
5,500 5,600 297
5,600 5,700 302
5,700 5,800 308
5,800 5,900 313
5,900 6,000 318
6,000 6,100 324
6,100 6,200 329
If line 9 of Form M2 is: at least but less than your tax is
6,200 6,300 334
6,300 6,400 340
6,400 6,500 345
6,500 6,600 350
6,600 6,700 356
6,700 6,800 361
6,800 6,900 366
6,900 7,000 372
7,000 7,100 377
7,100 7,200 383
7,200 7,300 388
7,300 7,400 393
7,400 7,500 399
7,500 7,600 404
7,600 7,700 409
7,700 7,800 415
7,800 7,900 420
7,900 8,000 425
8,000 8,100 431
8,100 8,200 436
8,200 8,300 441
8,300 8,400 447
8,400 8,500 452
8,500 8,600 457
8,600 8,700 463
8,700 8,800 468
8,800 8,900 473
8,900 9,000 479
9,000 9,100 484
9,100 9,200 490
9,200 9,300 495
9,300 9,400 500
9,400 9,500 506
9,500 9,600 511
9,600 9,700 516
9,700 9,800 522
9,800 9,900 527
9,900 10,000 532
10,000 10,100 538
10,100 10,200 543
10,200 10,300 548
10,300 10,400 554
10,400 10,500 559
10,500 10,600 564
10,600 10,700 570
10,700 10,800 575
10,800 10,900 580
10,900 11,000 586
11,000 11,100 591
11,100 11,200 597
11,200 11,300 602
11,300 11,400 607
11,400 11,500 613
11,500 11,600 618
11,600 11,700 623
11,700 11,800 629
11,800 11,900 634
11,900 12,000 639
12,000 12,100 645
12,100 12,200 650
12,200 12,300 655
12,300 12,400 661
12,400 12,500 666
If line 9 of Form M2 is: at least but less than your tax is
12,500 12,600 671
12,600 12,700 677
12,700 12,800 682
12,800 12,900 687
12,900 13,000 693
13,000 13,100 698
13,100 13,200 704
13,200 13,300 709
13,300 13,400 714
13,400 13,500 720
13,500 13,600 725
13,600 13,700 730
13,700 13,800 736
13,800 13,900 741
13,900 14,000 746
14,000 14,100 752
14,100 14,200 757
14,200 14,300 762
14,300 14,400 768
14,400 14,500 773
14,500 14,600 778
14,600 14,700 784
14,700 14,800 789
14,800 14,900 794
14,900 15,000 800
15,000 15,100 805
15,100 15,200 811
15,200 15,300 816
15,300 15,400 821
15,400 15,500 827
15,500 15,600 832
15,600 15,700 837
15,700 15,800 843
15,800 15,900 848
15,900 16,000 853
16,000 16,100 859
16,100 16,200 864
16,200 16,300 869
16,300 16,400 875
16,400 16,500 880
16,500 16,600 885
16,600 16,700 891
16,700 16,800 896
16,800 16,900 901
16,900 17,000 907
17,000 17,100 912
17,100 17,200 918
17,200 17,300 923
17,300 17,400 928
17,400 17,500 934
17,500 17,600 939
17,600 17,700 944
17,700 17,800 950
17,800 17,900 955
17,900 18,000 960
18,000 18,100 966
18,100 18,200 971
18,200 18,300 976
18,300 18,400 982
18,400 18,500 987
18,500 18,600 992
18,600 18,700 998
18,700 18,800 1,003
If line 9 of Form M2 is: at least but less than your tax is
18,800 18,900 1,008
18,900 19,000 1,014
19,000 19,100 1,019
19,100 19,200 1,025
19,200 19,300 1,030
19,300 19,400 1,035
19,400 19,500 1,041
19,500 19,600 1,046
19,600 19,700 1,051
19,700 19,800 1,057
19,800 19,900 1,062
19,900 20,000 1,067
20,000 20,100 1,073
20,100 20,200 1,078
20,200 20,300 1,083
20,300 20,400 1,089
20,400 20,500 1,094
20,500 20,600 1,099
20,600 20,700 1,105
20,700 20,800 1,110
20,800 20,900 1,115
20,900 21,000 1,121
21,000 21,100 1,126
21,100 21,200 1,132
21,200 21,300 1,137
21,300 21,400 1,142
21,400 21,500 1,148
21,500 21,600 1,153
21,600 21,700 1,158
21,700 21,800 1,164
21,800 21,900 1,169
21,900 22,000 1,174
22,000 22,100 1,180
22,100 22,200 1,185
22,200 22,300 1,190
22,300 22,400 1,196
22,400 22,500 1,201
22,500 22,600 1,206
22,600 22,700 1,212
22,700 22,800 1,217
22,800 22,900 1,222
22,900 23,000 1,228
23,000 23,100 1,233
23,100 23,200 1,239
23,200 23,300 1,244
23,300 23,400 1,249
23,400 23,500 1,255
23,500 23,600 1,260
23,600 23,700 1,265
23,700 23,800 1,271
23,800 23,900 1,277
23,900 24,000 1,283
24,000 24,100 1,290
24,100 24,200 1,297
24,200 24,300 1,304
24,300 24,400 1,311
24,400 24,500 1,317
24,500 24,600 1,324
24,600 24,700 1,331
24,700 24,800 1,338
24,800 24,900 1,345
24,900 25,000 1,351
25,000 25,100 1,358

2025 Tax Table (continued)
Continued
If line 9 of Form M2 is: at least but less than your tax is
25,100 25,200 1,365
25,200 25,300 1,372
25,300 25,400 1,379
25,400 25,500 1,385
25,500 25,600 1,392
25,600 25,700 1,399
25,700 25,800 1,406
25,800 25,900 1,413
25,900 26,000 1,419
26,000 26,100 1,426
26,100 26,200 1,433
26,200 26,300 1,440
26,300 26,400 1,447
26,400 26,500 1,453
26,500 26,600 1,460
26,600 26,700 1,467
26,700 26,800 1,474
26,800 26,900 1,481
26,900 27,000 1,487
27,000 27,100 1,494
27,100 27,200 1,501
27,200 27,300 1,508
27,300 27,400 1,515
27,400 27,500 1,521
27,500 27,600 1,528
27,600 27,700 1,535
27,700 27,800 1,542
27,800 27,900 1,549
27,900 28,000 1,555
28,000 28,100 1,562
28,100 28,200 1,569
28,200 28,300 1,576
28,300 28,400 1,583
28,400 28,500 1,589
28,500 28,600 1,596
28,600 28,700 1,603
28,700 28,800 1,610
28,800 28,900 1,617
28,900 29,000 1,623
29,000 29,100 1,630
29,100 29,200 1,637
29,200 29,300 1,644
29,300 29,400 1,651
29,400 29,500 1,657
29,500 29,600 1,664
29,600 29,700 1,671
29,700 29,800 1,678
29,800 29,900 1,685
29,900 30,000 1,691
30,000 30,100 1,698
30,100 30,200 1,705
30,200 30,300 1,712
30,300 30,400 1,719
30,400 30,500 1,725
30,500 30,600 1,732
30,600 30,700 1,739
30,700 30,800 1,746
30,800 30,900 1,753
30,900 31,000 1,759
31,000 31,100 1,766
31,100 31,200 1,773
31,200 31,300 1,780
31,300 31,400 1,787
If line 9 of Form M2 is: at least but less than your tax is
31,400 31,500 1,793
31,500 31,600 1,800
31,600 31,700 1,807
31,700 31,800 1,814
31,800 31,900 1,821
31,900 32,000 1,827
32,000 32,100 1,834
32,100 32,200 1,841
32,200 32,300 1,848
32,300 32,400 1,855
32,400 32,500 1,861
32,500 32,600 1,868
32,600 32,700 1,875
32,700 32,800 1,882
32,800 32,900 1,889
32,900 33,000 1,895
33,000 33,100 1,902
33,100 33,200 1,909
33,200 33,300 1,916
33,300 33,400 1,923
33,400 33,500 1,929
33,500 33,600 1,936
33,600 33,700 1,943
33,700 33,800 1,950
33,800 33,900 1,957
33,900 34,000 1,963
34,000 34,100 1,970
34,100 34,200 1,977
34,200 34,300 1,984
34,300 34,400 1,991
34,400 34,500 1,997
34,500 34,600 2,004
34,600 34,700 2,011
34,700 34,800 2,018
34,800 34,900 2,025
34,900 35,000 2,031
35,000 35,100 2,038
35,100 35,200 2,045
35,200 35,300 2,052
35,300 35,400 2,059
35,400 35,500 2,065
35,500 35,600 2,072
35,600 35,700 2,079
35,700 35,800 2,086
35,800 35,900 2,093
35,900 36,000 2,099
36,000 36,100 2,106
36,100 36,200 2,113
36,200 36,300 2,120
36,300 36,400 2,127
36,400 36,500 2,133
36,500 36,600 2,140
36,600 36,700 2,147
36,700 36,800 2,154
36,800 36,900 2,161
36,900 37,000 2,167
37,000 37,100 2,174
37,100 37,200 2,181
37,200 37,300 2,188
37,300 37,400 2,195
37,400 37,500 2,201
37,500 37,600 2,208
37,600 37,700 2,215
If line 9 of Form M2 is: at least but less than your tax is
37,700 37,800 2,222
37,800 37,900 2,229
37,900 38,000 2,235
38,000 38,100 2,242
38,100 38,200 2,249
38,200 38,300 2,256
38,300 38,400 2,263
38,400 38,500 2,269
38,500 38,600 2,276
38,600 38,700 2,283
38,700 38,800 2,290
38,800 38,900 2,297
38,900 39,000 2,303
39,000 39,100 2,310
39,100 39,200 2,317
39,200 39,300 2,324
39,300 39,400 2,331
39,400 39,500 2,337
39,500 39,600 2,344
39,600 39,700 2,351
39,700 39,800 2,358
39,800 39,900 2,365
39,900 40,000 2,371
40,000 40,100 2,378
40,100 40,200 2,385
40,200 40,300 2,392
40,300 40,400 2,399
40,400 40,500 2,405
40,500 40,600 2,412
40,600 40,700 2,419
40,700 40,800 2,426
40,800 40,900 2,433
40,900 41,000 2,439
41,000 41,100 2,446
41,100 41,200 2,453
41,200 41,300 2,460
41,300 41,400 2,467
41,400 41,500 2,473
41,500 41,600 2,480
41,600 41,700 2,487
41,700 41,800 2,494
41,800 41,900 2,501
41,900 42,000 2,507
42,000 42,100 2,514
42,100 42,200 2,521
42,200 42,300 2,528
42,300 42,400 2,535
42,400 42,500 2,541
42,500 42,600 2,548
42,600 42,700 2,555
42,700 42,800 2,562
42,800 42,900 2,569
42,900 43,000 2,575
43,000 43,100 2,582
43,100 43,200 2,589
43,200 43,300 2,596
43,300 43,400 2,603
43,400 43,500 2,609
43,500 43,600 2,616
43,600 43,700 2,623
43,700 43,800 2,630
43,800 43,900 2,637
43,900 44,000 2,643
If line 9 of Form M2 is: at least but less than your tax is
44,000 44,100 2,650
44,100 44,200 2,657
44,200 44,300 2,664
44,300 44,400 2,671
44,400 44,500 2,677
44,500 44,600 2,684
44,600 44,700 2,691
44,700 44,800 2,698
44,800 44,900 2,705
44,900 45,000 2,711
45,000 45,100 2,718
45,100 45,200 2,725
45,200 45,300 2,732
45,300 45,400 2,739
45,400 45,500 2,745
45,500 45,600 2,752
45,600 45,700 2,759
45,700 45,800 2,766
45,800 45,900 2,773
45,900 46,000 2,779
46,000 46,100 2,786
46,100 46,200 2,793
46,200 46,300 2,800
46,300 46,400 2,807
46,400 46,500 2,813
46,500 46,600 2,820
46,600 46,700 2,827
46,700 46,800 2,834
46,800 46,900 2,841
46,900 47,000 2,847
47,000 47,100 2,854
47,100 47,200 2,861
47,200 47,300 2,868
47,300 47,400 2,875
47,400 47,500 2,881
47,500 47,600 2,888
47,600 47,700 2,895
47,700 47,800 2,902
47,800 47,900 2,909
47,900 48,000 2,915
48,000 48,100 2,922
48,100 48,200 2,929
48,200 48,300 2,936
48,300 48,400 2,943
48,400 48,500 2,949
48,500 48,600 2,956
48,600 48,700 2,963
48,700 48,800 2,970
48,800 48,900 2,977
48,900 49,000 2,983
49,000 49,100 2,990
49,100 49,200 2,997
49,200 49,300 3,004
49,300 49,400 3,011
49,400 49,500 3,017
49,500 49,600 3,024
49,600 49,700 3,031
49,700 49,800 3,038
49,800 49,900 3,045
49,900 50,000 3,051
50,000 50,100 3,058
50,100 50,200 3,065
50,200 50,300 3,072

2025 Tax Table (continued)
If line 9 of Form M2 is: at least but less than your tax is
50,300 50,400 3,079
50,400 50,500 3,085
50,500 50,600 3,092
50,600 50,700 3,099
50,700 50,800 3,106
50,800 50,900 3,113
50,900 51,000 3,119
51,000 51,100 3,126
51,100 51,200 3,133
51,200 51,300 3,140
51,300 51,400 3,147
51,400 51,500 3,153
51,500 51,600 3,160
51,600 51,700 3,167
51,700 51,800 3,174
51,800 51,900 3,181
51,900 52,000 3,187
52,000 52,100 3,194
52,100 52,200 3,201
52,200 52,300 3,208
52,300 52,400 3,215
52,400 52,500 3,221
52,500 52,600 3,228
52,600 52,700 3,235
52,700 52,800 3,242
52,800 52,900 3,249
52,900 53,000 3,255
53,000 53,100 3,262
53,100 53,200 3,269
53,200 53,300 3,276
53,300 53,400 3,283
53,400 53,500 3,289
53,500 53,600 3,296
53,600 53,700 3,303
53,700 53,800 3,310
53,800 53,900 3,317
53,900 54,000 3,323
54,000 54,100 3,330
54,100 54,200 3,337
54,200 54,300 3,344
54,300 54,400 3,351
54,400 54,500 3,357
54,500 54,600 3,364
54,600 54,700 3,371
54,700 54,800 3,378
54,800 54,900 3,385
54,900 55,000 3,391
55,000 55,100 3,398
55,100 55,200 3,405
55,200 55,300 3,412
55,300 55,400 3,419
55,400 55,500 3,425
55,500 55,600 3,432
55,600 55,700 3,439
55,700 55,800 3,446
55,800 55,900 3,453
55,900 56,000 3,459
56,000 56,100 3,466
56,100 56,200 3,473
56,200 56,300 3,480
56,300 56,400 3,487
56,400 56,500 3,493
56,500 56,600 3,500
56,600 56,700 3,507
If line 9 of Form M2 is: at least but less than your tax is
56,700 56,800 3,514
56,800 56,900 3,521
56,900 57,000 3,527
57,000 57,100 3,534
57,100 57,200 3,541
57,200 57,300 3,548
57,300 57,400 3,555
57,400 57,500 3,561
57,500 57,600 3,568
57,600 57,700 3,575
57,700 57,800 3,582
57,800 57,900 3,589
57,900 58,000 3,595
58,000 58,100 3,602
58,100 58,200 3,609
58,200 58,300 3,616
58,300 58,400 3,623
58,400 58,500 3,629
58,500 58,600 3,636
58,600 58,700 3,643
58,700 58,800 3,650
58,800 58,900 3,657
58,900 59,000 3,663
59,000 59,100 3,670
59,100 59,200 3,677
59,200 59,300 3,684
59,300 59,400 3,691
59,400 59,500 3,697
59,500 59,600 3,704
59,600 59,700 3,711
59,700 59,800 3,718
59,800 59,900 3,725
59,900 60,000 3,731
60,000 60,100 3,738
60,100 60,200 3,745
60,200 60,300 3,752
60,300 60,400 3,759
60,400 60,500 3,765
60,500 60,600 3,772
60,600 60,700 3,779
60,700 60,800 3,786
60,800 60,900 3,793
60,900 61,000 3,799
61,000 61,100 3,806
61,100 61,200 3,813
61,200 61,300 3,820
61,300 61,400 3,827
61,400 61,500 3,833
61,500 61,600 3,840
61,600 61,700 3,847
61,700 61,800 3,854
61,800 61,900 3,861
61,900 62,000 3,867
62,000 62,100 3,874
62,100 62,200 3,881
62,200 62,300 3,888
62,300 62,400 3,895
62,400 62,500 3,901
62,500 62,600 3,908
62,600 62,700 3,915
62,700 62,800 3,922
62,800 62,900 3,929
62,900 63,000 3,935
63,000 63,100 3,942
If line 9 of Form M2 is: at least but less than your tax is
63,100 63,200 3,949
63,200 63,300 3,956
63,300 63,400 3,963
63,400 63,500 3,969
63,500 63,600 3,976
63,600 63,700 3,983
63,700 63,800 3,990
63,800 63,900 3,997
63,900 64,000 4,003
64,000 64,100 4,010
64,100 64,200 4,017
64,200 64,300 4,024
64,300 64,400 4,031
64,400 64,500 4,037
64,500 64,600 4,044
64,600 64,700 4,051
64,700 64,800 4,058
64,800 64,900 4,065
64,900 65,000 4,071
65,000 65,100 4,078
65,100 65,200 4,085
65,200 65,300 4,092
65,300 65,400 4,099
65,400 65,500 4,105
65,500 65,600 4,112
65,600 65,700 4,119
65,700 65,800 4,126
65,800 65,900 4,133
65,900 66,000 4,139
66,000 66,100 4,146
66,100 66,200 4,153
66,200 66,300 4,160
66,300 66,400 4,167
66,400 66,500 4,173
66,500 66,600 4,180
66,600 66,700 4,187
66,700 66,800 4,194
66,800 66,900 4,201
66,900 67,000 4,207
67,000 67,100 4,214
67,100 67,200 4,221
67,200 67,300 4,228
67,300 67,400 4,235
67,400 67,500 4,241
67,500 67,600 4,248
67,600 67,700 4,255
67,700 67,800 4,262
67,800 67,900 4,269
67,900 68,000 4,275
68,000 68,100 4,282
68,100 68,200 4,289
68,200 68,300 4,296
68,300 68,400 4,303
68,400 68,500 4,309
68,500 68,600 4,316
68,600 68,700 4,323
68,700 68,800 4,330
68,800 68,900 4,337
68,900 69,000 4,343
69,000 69,100 4,350
69,100 69,200 4,357
69,200 69,300 4,364
69,300 69,400 4,371
69,400 69,500 4,377
If line 9 of Form M2 is: at least but less than your tax is
69,500 69,600 4,384
69,600 69,700 4,391
69,700 69,800 4,398
69,800 69,900 4,405
69,900 70,000 4,411
70,000 70,100 4,418
70,100 70,200 4,425
70,200 70,300 4,432
70,300 70,400 4,439
70,400 70,500 4,445
70,500 70,600 4,452
70,600 70,700 4,459
70,700 70,800 4,466
70,800 70,900 4,473
70,900 71,000 4,479
71,000 71,100 4,486
71,100 71,200 4,493
71,200 71,300 4,500
71,300 71,400 4,507
71,400 71,500 4,513
71,500 71,600 4,520
71,600 71,700 4,527
71,700 71,800 4,534
71,800 71,900 4,541
71,900 72,000 4,547
72,000 72,100 4,554
72,100 72,200 4,561
72,200 72,300 4,568
72,300 72,400 4,575
72,400 72,500 4,581
72,500 72,600 4,588
72,600 72,700 4,595
72,700 72,800 4,602
72,800 72,900 4,609
72,900 73,000 4,615
73,000 73,100 4,622
73,100 73,200 4,629
73,200 73,300 4,636
73,300 73,400 4,643
73,400 73,500 4,649
73,500 73,600 4,656
73,600 73,700 4,663
73,700 73,800 4,670
73,800 73,900 4,677
73,900 74,000 4,683
74,000 74,100 4,690
74,100 74,200 4,697
74,200 74,300 4,704
74,300 74,400 4,711
74,400 74,500 4,717
74,500 74,600 4,724
74,600 74,700 4,731
74,700 74,800 4,738
74,800 74,900 4,745
74,900 75,000 4,751
75,000 75,100 4,758
75,100 75,200 4,765
75,200 75,300 4,772
75,300 75,400 4,779
75,400 75,500 4,785
75,500 75,600 4,792
75,600 75,700 4,799
75,700 75,800 4,806
75,800 75,900 4,813
Continued

If line 9 of Form M2 is: at least but less than your tax is
75,900 76,000 4,819
76,000 76,100 4,826
76,100 76,200 4,833
76,200 76,300 4,840
76,300 76,400 4,847
76,400 76,500 4,853
76,500 76,600 4,860
76,600 76,700 4,867
76,700 76,800 4,874
76,800 76,900 4,881
76,900 77,000 4,887
77,000 77,100 4,894
77,100 77,200 4,901
77,200 77,300 4,908
77,300 77,400 4,915
77,400 77,500 4,921
77,500 77,600 4,928
77,600 77,700 4,935
77,700 77,800 4,942
77,800 77,900 4,949
77,900 78,000 4,955
78,000 78,100 4,962
78,100 78,200 4,969
78,200 78,300 4,976
78,300 78,400 4,983
78,400 78,500 4,989
78,500 78,600 4,996
78,600 78,700 5,003
78,700 78,800 5,010
78,800 78,900 5,017
78,900 79,000 5,023
79,000 79,100 5,030
79,100 79,200 5,037
79,200 79,300 5,044
79,300 79,400 5,051
79,400 79,500 5,057
79,500 79,600 5,064
79,600 79,700 5,071
79,700 79,800 5,078
2025 Tax Table (continued)
If line 9 of Form M2 is: at least but less than your tax is
79,800 79,900 5,085
79,900 80,000 5,091
80,000 80,100 5,098
80,100 80,200 5,105
80,200 80,300 5,112
80,300 80,400 5,119
80,400 80,500 5,125
80,500 80,600 5,132
80,600 80,700 5,139
80,700 80,800 5,146
80,800 80,900 5,153
80,900 81,000 5,159
81,000 81,100 5,166
81,100 81,200 5,173
81,200 81,300 5,180
81,300 81,400 5,187
81,400 81,500 5,193
81,500 81,600 5,200
81,600 81,700 5,207
81,700 81,800 5,214
81,800 81,900 5,221
81,900 82,000 5,227
82,000 82,100 5,234
82,100 82,200 5,241
82,200 82,300 5,248
82,300 82,400 5,255
82,400 82,500 5,261
82,500 82,600 5,268
82,600 82,700 5,275
82,700 82,800 5,282
82,800 82,900 5,289
If line 9 of Form M2 is: at least but less than your tax is
82,900 83,000 5,295
83,000 83,100 5,302
83,100 83,200 5,309
83,200 83,300 5,316
83,300 83,400 5,323
83,400 83,500 5,329
83,500 83,600 5,336
83,600 83,700 5,343
83,700 83,800 5,350
83,800 83,900 5,357
83,900 84,000 5,363
84,000 84,100 5,370
84,100 84,200 5,377
84,200 84,300 5,384
84,300 84,400 5,391
84,400 84,500 5,397
84,500 84,600 5,404
84,600 84,700 5,411
84,700 84,800 5,418
84,800 84,900 5,425
84,900 85,000 5,431
85,000 85,100 5,438
85,100 85,200 5,445
85,200 85,300 5,452
85,300 85,400 5,459
85,400 85,500 5,465
85,500 85,600 5,472
85,600 85,700 5,479
85,700 85,800 5,486
85,800 85,900 5,493
85,900 86,000 5,499
If line 9 of Form M2 is: at least but less than your tax is
86,000 86,100 5,506
86,100 86,200 5,513
86,200 86,300 5,520
86,300 86,400 5,527
86,400 86,500 5,533
86,500 86,600 5,540
86,600 86,700 5,547
86,700 86,800 5,554
86,800 86,900 5,561
86,900 87,000 5,567
87,000 87,100 5,574
87,100 87,200 5,581
87,200 87,300 5,588
87,300 87,400 5,595
87,400 87,500 5,601
87,500 87,600 5,608
87,600 87,700 5,615
87,700 87,800 5,622
87,800 87,900 5,629
87,900 88,000 5,635
88,000 88,100 5,642
88,100 88,200 5,649
88,200 88,300 5,656
88,300 88,400 5,663
88,400 88,500 5,669
88,500 88,600 5,676
88,600 88,700 5,683
88,700 88,800 5,690
88,800 88,900 5,697
88,900 89,000 5,703
89,000 89,100 5,710
89,100 89,200 5,717
89,200 89,300 5,724
89,300 89,400 5,731
89,400 89,500 5,737
89,500 89,600 5,744
89,600 89,700 5,751
89,700 89,800 5,758
89,800 89,900 5,765
89,900 90,000 5,771
If you use tax preparation software, be careful to buy packages acceptable to the Department of Revenue. Forms produced by the software must meet requirements and be approved before being sold or provided to consumers.
If you are considering any company's tax preparation software, ask to see the vendor's approval letter for the forms you will be using. Keep in mind that we usually won't know if they are approved until late January. It is also important to test the software before filing forms prepared with it. We do not, however, approve the operation or accuracy of any software.
Below are common problems found on fiduciary returns submitted using software packages:

Verify that the program uses updated tax tables. Tax tables are required to be updated every year for inflation. Be sure that the amount on line 10 of your Form M2 is the same amount shown in the tax tables. — Fiscal year filers must use the table based on the beginning year of the return. — If you are an Electing Small Business Trust (ESBT), verify that the software package uses the tax table when determining the tax. The ESBT is taxed at the highest tax rate only for federal purposes.
Look for a payment voucher if you have an amount due on line 39 of Form M2. If you owe tax, your software package is required to include a payment voucher when you print out a copy of your return. If you are paying your tax by check, you must complete and send this payment voucher with your check to ensure your payment is credited properly.
Verify that estimated tax payments were made. Some software programs may insert the amount of estimated tax payments that should have been paid, not the amount of tax actually paid.

Common Problems Using Software Packages
90,000 & over
If line 9 of Form M2 Enter on line 10 is: of your Form M2: of the but not amount over— over— over—
0 23,810 0.00 5.35% 0
23,810 94,590 1,273.84 + 6.80% 23,810
94,590 165,205 6,086.88 + 7.85% 94,590
165,205 and up 11,630.16 + 9.85% 165,205

Instructions for Form M2 — Fiduciary (2025)

# What's New for 2025

# Filing Requirements

# General Information

# FOR ADDITIONAL INFORMATION PLEASE CONTACT THE USPS

# ALIGN WITH UPPER RIGHT CORNER ALIGN WITH LOWER RIGHT CORNER

# MINNESOTA DEPARTMENT OF REVENUE FIDUCIARY INCOME TAX

# Line Instructions

# Line Instructions

What's New for 2025

Filing Requirements

General Information

FOR ADDITIONAL INFORMATION PLEASE CONTACT THE USPS

ALIGN WITH UPPER RIGHT CORNER ALIGN WITH LOWER RIGHT CORNER

MINNESOTA DEPARTMENT OF REVENUE FIDUCIARY INCOME TAX

Line Instructions

Line Instructions